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Retirement Accounts
Retirement Plans
IRA
Passbook account is for the person who wants a variable
interest rate, the person who contributes to an IRA regularly,
or the person who is now taking distributions from their IRA.
12 Month IRA Certificate of Deposit
is for the person who has a lump sum to invest and wants to
lock the rate of return in for a year at a time.
Traditional IRAs
An Individual Retirement Arrangement is an account which
allows you to defer taxes on your earnings until they are
withdrawn. Also, certain contributions are tax deductible
in the tax year for which they are made.
ROTH IRAs
A ROTH IRA is a newer Individual Retirement Arrangement
where contributions are non-deductible, but all withdrawals,
including earnings are tax-free if the account has been
open for five years and the account holder is 59 ½
or older.
| Maximum
Annual Contributions for Traditional & ROTH IRAs |
|
|
|
2009 |
2010 |
| Single |
|
$5,000.00 |
$5,000.00 |
| Married |
|
$10,000.00 |
$10,000.00 |
"Catch-Up" Contributions
for Traditional and ROTH
Workers 50 and older before the end of the taxable year,
can make up for lost time with additional IRA contributions
over and above the maximums above:
| For
year 2006 and thereafter |
$1,000.00 |
Rollovers and Transfers
Rollovers and Transfers offer opportunities to move your
retirement assets to where you want them, while retaining
their substantial tax advantages. Assets that can be moved
or consolidated are qualified plans, tax-sheltered annuities,
and IRAs.
SEP (Simplified Employer Pension)
SEP is a retirement plan established by an employer. Any
employer, whether a corporation, partnership, or a self-employed
individual, may establish a SEP, even if there are no other
employees. Each year, the employer may contribute a certain
percentage of each eligible employee's compensation directly
to the employee's IRA. It is simple to establish and maintain
with minimal administration costs.
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